The state of California faces trends which will significantly shape higher education in the coming century and which require public debate and decision in the near future. The trends are enrollment growth coupled with continued slow economic growth with consequent low appropriations for education. A study by the National Center for Higher Education Management Systems (NCHEMS) found that California would not be able to meet expected increased demand for postsecondary education without significantly altering the relationship between the state and its institutions of higher education. The cost of maintaining the current system will require either an increased proportion of state revenues for higher education or increased student fees. Faculty, students, administrators and others gathered for four informal meetings specifically to generate policy options that might guide future debate. Participants developed a list of areas for debate: the aims of higher education, paying for higher education, flexibility and responsibility, and quality. The state can either begin asking and tackling broader and more fundamental policy questions in an effort to design a new approach to the future or stay with the current fragmented, short-term, by-default approach. Appendixes list report contributors and participants in the four policy meetings. (JB)